How to analyse Bank Nifty and Nifty based Open Interest for Intraday Trade for 30 Jan, 2020

Today Bank Nifty and Nifty open with a gap and witnessed some range bound movements. At lower levels buying happens and at higher levels sell off.

Now we are going to analyze Open Interest, Change in Open Interest and Trend cycles for the next day trading of 30th Jan, 2020. This analysis can be used for the swing trading in Bank Nifty and Nifty As well.

The Bank Nifty is stuck in a wider trading range between 30,600 and 31,400 levels in last seven session, as every dip got bought into while supply pressure emerged at higher levels. The index needs to hold above 30,800 level to witness a bounce towards 31,100 and then 31,250 levels. On the flip side, a sustainable move below 30,800 level may drag the banking index towards its next support at 30,500 and then 30,250 levels.

On the options front, maximum Put open interest was at 30500 (7,25,180 contracts) followed by 30,000 levels, while maximum Call OI was at 31,500 followed by 31,000 level. 

There was highest change in Open Interest at 31,000 followed by 30,500 levels while in Call side was seen at 31,200 followed by 31,100 level. 

There was major Call unwinding at strike price 30,800. Options data indicated a trading range between 30,500 and 31,000 levels.

The closing of Bank Nifty as on 29th Jan 2020 is 30877 on spot level. Now time to find out the trading range of the bank nifty. For this purpose we need to look for the highest call OI Row and Highest Put OI Row on the option chain of the Bank Nifty.

Bank Nifty Option Chain

1. Highest Call at 31500. 

2. Highest Put at 30500. 

1. Pivot Strike at 31000. 

Highest call acts as the highest resistance and highest put will act as the highest support for the Nifty and bank nifty.

Nifty Option Chain

The closing of Nifty as on 29th Jan 2020 is 12129.5 on spot level. Now time to find out the trading range of the nifty. For this purpose we need to look for the highest call OI Row and Highest Put OI Row on the option chain of the Nifty.

On the options front, maximum Put open interest was at 12,000 followed by 12,100 levels, while maximum Call OI was at 12,200 followed by 12,300 level. There was highest change in Open Interest at 12,100 followed by 12,150 level while in Call side was seen at 12,150 followed by 12,250 level. 

There was major Call unwinding at strike price 12,100. Options data indicated a trading range between 12,050 and 12,200 levels.

1. Highest Call at 12200. 

2. Highest Put at 12000. 

Trend Cycles of Bank Nifty and Nifty

Bank Nifty Trend Cycles

Nifty Trend Cycles

Disclaimer : The analysis is for educational purpose only. Please do your own analysis or ask your financial adviser for the same.